WTI (Oct) $86.67 -67c, Brent (Nov) $ 89.92 -68c, Diff -$3.25 +19c.

USNG (Oct) $2.57 +6c, UKNG (Oct) 86.0p +11.44p, TTF (Oct) €34.9 +€3.4.

Oil price

Oil has risen again today, yesterday’s EIA inventory stats showed a crude draw of 6.303m barrels, again much higher than the teenage scribblers had guessed, gasoline also drew by more, in its case 2.666m b’s as the Labor Day weekend saw many people take to the highways.

Natural gas prices are rising again as talks broke down in Australia between Chevron and their workforce who are now likely to strike.

Extinction Rebellion activists have arrived in the States as they protested at the Womens US Open semi final last night. One glued his feet to the floor of the Arthur Ashe stadium and play was interrupted by 49 minutes.

Touchstone Exploration – Correction

With many apologies, in yesterday’s blog I inadvertently said that the Touchstone Capital Markets Day was next week, I’m going loopy in my old age because I know perfectly well that it on Tuesday 26th September as I’m going to be there…

Ithaca Energy

On 23 August 2023, the Board of Ithaca Energy plc announced a second interim dividend of $133 million, representing $0.1321 per ordinary share. The second interim dividend will be paid on 29 September 2023 to shareholders on the share register on 1 September 2023.

As previously announced, the dividend is payable in cash in sterling to holders of ordinary shares. Sterling dividends will be converted from US dollars at the mid-point of the market exchange rate on 4 September 2023 (£1 = US$1.2621). Accordingly, the amount of sterling dividend payable in cash on 29 September 2023 will be 10.4667 pence per share.

I recently covered the Ithaca results, commenting that I had been able to assess the company after recently having a meeting with them which was positive. I then added….

Since then a combination of excellent operational and financial management has made looking at the company highly compelling.

So the bottom line is that the announcement of the dividend has enabled us to give a firm number on the yield and not only for this year but with confidence expressed going forward for next year as well. Readers know that I don’t buy shares in companies I write up in the blog as I don’t want any accusations of trading on what I have written.

But, with Ithaca now yielding 22% for this year and c.15% for next year the shares have significant appeal and are monumentally cheap.

I reproduce today’s dividend announcement so that people can see what it looks like to be on the receiving end of such a yield…

Pennpetro Energy

Pennpetro Energy advises that further to its RNS dated 19 July 2023 – “Completion of transaction to increase interest in oil leases in Gonzales County, Texas”, has now completed the acquisition of the 100% Working Interest in the Chalk Talk #1, Chalk Talk #3 well (including the Whistling Straits #5H) and Chalk Talk #4 wells from Millennium PetroCapital Corporation and the official records with the Texas Railroad Commission (“RRC”) show that PPP’s subsidiary Nobel Petroleum USA Inc (“Nobel”) is now is the legal owner and operator of these asset.

Tom Evans, Pennpetro Energy’s CEO said:

“Good news! Our oil development team in Texas have been very busy registering our 100% interests in these oil wells and preparing for the well workovers to start. Noble is now finally visible on the Railroad Commission website as owner / operator of the wells thereby allowing us to formally appoint contractors to carry out the on-site well works to bring these well back into oil production.  Our current plans are to start with the workover of the Chalk Talk #1H well before moving on to flowing oil from Chalk Talk #4H, City of Gonzales #1 (COG#1) and our Whistling Straits 5H wells. We have a very busy work program ahead and look forward to updating shareholders in the near term.”

I don’t yet cover Pennpetro and so I’m just keeping an eye on it ahead of a meting with the company shortly. I will be closely following any feedback I get from readers about Pennpetro as usual. 

And finally…

The Rugby World Cup starts today and the opening fixture is the tastiest of all, Les Bleus host the All Blacks tonight and it could easily be the final which I’m not sure has ever happened before.

This weekend Ireland play Romania, England play the Pumas, the Springboks play the Scots and Wales play Fiji.

International footy continues with the Euro qualifiers as Cyprus host Scotland, England play the Ukraine in Poland and Northern Ireland are in Kazakhstan having lost last night to Slovenia.

And the ODI series starts against the Black Caps today in Cardiff with game 2 at Southampton on Sunday.